Shares in Chinese manufacturers of optical components used in AI data centers fell on Wednesday, with losses reaching around 10%, after a Reuters report said the Trump administration was drafting a ban on imports into the United States of new Chinese components for data centers.
Optical component shares fall
Shares in optical component maker Zhongji Innolight (SZ:300308) (HK:3308) fell by around 10% on both the Shenzhen and Hong Kong exchanges.
Shares in Shenzhen-listed Eoptolink Technology (SZ:300502) fell more than 7%, while Suzhou TFC Optical Communication Co (SZ:300394) dropped 3.5%, as investors assessed the potential impact of restrictions on exporters heavily exposed to the U.S. market.
Proposed U.S. rules
Reuters reported on Tuesday that the U.S. Federal Communications Commission was working on rules to ban imports of new Chinese optical transceivers, which transmit data over fiber-optic cables inside data centers.
According to the report, officials aim to publish the measure this year, although it remains subject to change or withdrawal.
Security and trade concerns
Reuters reported that the proposed restrictions aim to reduce security risks associated with AI infrastructure, including the potential for data theft, malware and service disruptions. The report raised market concerns about new U.S. trade restrictions on Chinese components.
